Louisiana governor Bobby Jindal (R) has put forth a radical proposal to completely eliminate corporate and income taxes in his state. Here’s an excerpt of the statement he put out with his proposal:
The bottom line is that for too long, Louisiana’s workers and small businesses have suffered from having a state tax structure that is too complex and that holds back economic prosperity. It’s time to change that so people can keep more of their own money and foster an environment where businesses want to invest and create good-paying jobs.
The local press is reporting that, in order to keep his proposal revenue neutral, Jindal is considering hiking the state sales tax from 4 to 7 percent. That’s a 75 percent increase in a tax primarily paid for by the middle and working class. This would involve a huge shift in tax responsibilities from the rich — the state currently has three income tax brackets which require wealthier citizens to pay more — to the rest of Louisiana.